REHDA Welcomes KPKT’s Balanced Approach to Build-Then-Sell and Sell-Then-Build Models

KUALA LUMPUR, Nov 3 — The Real Estate and Housing Developers’ Association (REHDA) Malaysia has expressed appreciation to the Ministry of Housing and Local Government (KPKT) for its recent clarification that both the Build-Then-Sell (BTS) and Sell-Then-Build (STB) housing systems will continue to coexist.

According to REHDA, Minister Nga Kor Ming’s statement in Parliament reflects the government’s commitment to prioritizing the rakyat’s needs while maintaining an open dialogue with developers and industry stakeholders to ensure that Malaysia’s property market remains strong and sustainable.

REHDA president Datuk Ir. Ho Hon Sang noted that the STB system has been instrumental in keeping homes affordable for Malaysians for decades, allowing developers to deliver housing that aligns with the national housing agenda.

“A strictly BTS model could strain the industry’s cash flow, making it harder for developers—especially small and medium-sized enterprises—to provide affordable homes,” Ho explained.

He added that homebuyers still enjoy flexibility, as the majority of property transactions each year (estimated at 80% to 85%) are effectively conducted under a build-then-sell structure in the secondary market.

The BTS 10:90 scheme, outlined under the Housing Development (Control and Licensing) Act 1966 (Act 118), remains an available option for developers with sufficient financial capability, according to REHDA.

“We welcome the government’s balanced stance and look forward to the upcoming housing reform plan announced by YB Nga Kor Ming, which could enhance confidence and innovation within Malaysia’s property industry,” said Ho.

Nga had earlier emphasized that mandating a full BTS approach could unintentionally benefit large corporations while disadvantaging SME developers, who play an essential role in shaping smaller towns and regional markets.

Impact Beyond Residential: Implications for the Industrial & Commercial Property Sector

While the discussion primarily focuses on the residential housing segment, this balanced policy direction also brings stability to Malaysia’s wider property landscape, including industrial and commercial real estate across Kuala Lumpur and Selangor.

Developers and investors in industrial land for sale in Selangor, factory properties in Puchong, and office spaces in Bukit Jalil or Shah Alam can benefit from the maintained flexibility in development financing models. The continuation of both BTS and STB frameworks supports a healthier project pipeline and ensures the commercial property market in KL remains vibrant and responsive to business needs.

This clarity from KPKT reassures not only homebuyers but also investors in industrial estates, logistics hubs, and office developments, where project financing structures often mirror residential models.

With Malaysia’s property industry evolving under a more balanced and flexible framework, the long-term outlook for both residential and industrial sectors appears positive — positioning KL and Selangor as prime regions for continued real estate growth.